How do I close a Firm?
Submit the Surrender Form.
Can a principal broker act as a principal broker for two firms?
Yes, a principal broker may act as a principal broker for two (2) firms as long as both firms are in the same location. See, T. C. A. § 62-13-309(g). As used in this subsection (g), “the same location” means that both firms are located at and use the same physical address.
Can I work from my home?
A licensee may have the main office or branch office of a firm in their home if the zoning allows a real estate office at that location. The licensee must apply for a firm license and assign a Principal Broker. Please refer to RULE 1260-02-.03 OFFICES for requirements for offices.
I recently transferred to a new real estate firm and a sale closed with my old firm. Do they still have to pay me?
The commissions earned by an affiliated licensee while working under a principal broker can still be paid after one (1) or more of the following circumstances occur:
(a) The affiliated licensee transfers to a new broker;
(b) The affiliated licensee retires his or her license;
(c) The affiliated licensee is in broker release status;
(d) The affiliated licensee allows his or her license to expire; or
(e) The death of the affiliated licensee.
See 1260-02-.39 COMMISSIONS EARNED BY AFFILIATED LICENSEES.
How long must a firm keep records on file?
Pursuant to T.C.A. § 62-13-312(b)(6), real estate licensees must preserve records relating to any real estate transaction for three (3) years following the consummation of said real estate transaction. Real estate licensees may utilize electronic recordkeeping methods to comply with this requirement, provided that the following conditions are met:
(a) All documents required to be retained must be readily accessible in an organized format providing ease in document identification within twenty-four (24) hours of any request for inspection by representatives of the Commission.
(b) In order to ensure proper document retention, the principal broker of all real estate firms that use electronic recordkeeping methods must develop and utilize a retention schedule that safeguards the security, authenticity, and accuracy of the records for the entire required retention period and that also provides for the use of technology and hardware that ensures the accessibility of records in a readable format.
Can a lawyer receive a referral fee from a real estate firm?
No. A lawyer can only receive a referral fee or commission if they are properly licensed as a real estate broker or affiliate and the compensation is paid to them by the licensed real estate firm where they are affiliated.
Can a real estate firm be physically located outside of Tennessee?
Yes, a real estate firm physically located outside of Tennessee must fill out the "Consent to Jurisdiction" form on page 6 of the "Initial Firm Application." The name of the firm must also be registered with the Tennessee Secretary of State, unless the firm is a sole proprietor.